Welcome to EV's point and figures. This blog is dedicated to the use of point and figure charts in technical analysis.

Although P&F first appeared in charts in the 1930's, it is an often overlooked techique for analysing stocks and charts. A poor relation compared to line and bar charts and their range of momentum indicators. Yet few charts provide a clearer picture of the daily battle between bulls and bears for market control.

Like most methods, it should not be used in isolation. It should form part of an analysts 'tool box' and be used with other techniques to help form an overall view.

The charts that appear on this blog and any accompanying comments are purely for information purposes only - my own personal take on where the prices may be heading. They do not constitute investment advice.

Tuesday, September 13, 2011

FTSE update

A move below 5,050 activates that 4,500 target to the downside. I just wonder if the bulls and bears will continue to fight between 4,950 and 5,400 for a bit longer. If this was a forming right shoulder, i'd expect a few more columns of X's and 0's prior to breaking lower. Either way, a move through 5,050 activates the target.